Telecom Update (Canada) #183, May 17, 1999

Telecom Update (Canada) #183, May 17, 1999

Post by Angus TeleManagemen » Tue, 18 May 1999 04:00:00



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*                      TELECOM UPDATE                      *
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*                 Number 183: May 17, 1999                 *
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IN THIS ISSUE:

** CRTC Won't Regulate the Internet
** Telus to Build National Fiber Net
** Metromedia to Offer Dark Fiber in Toronto
** Mobility Canada Splits
** Internet Direct, Look to Merge
** Nortel to Drop 4,000 Manufacturing Jobs
** Bell Mobility Launches Digital Wireless Data
** Bell Strike Ends
** Shaw to Accelerate Internet Rollout
** 24-Hour LD Plan From Bell
** Profit, Revenue Down at Teleglobe
** CRTC Rules on IX Forbearance
** Motorola Establishes Montreal Software Center
** Hummingbird Wins PC Docs Bidding War
** MetroNet Installs 100,000 Lines
** Cantel Offers Text Messaging for the Deaf
** BCnet Seeks Partners for Advanced University Network
** CRTC Publishes 1999-2000 Calendar
** Corporate Reports
      Microcell
      TIW
** Techniques to Quell the Wireless Work Overload

CRTC WON'T REGULATE THE INTERNET: On May 17, the CRTC announced that
new media on the Internet "are achieving the goals of the Broadcasting
Act and are vibrant, highly competitive and successful without
regulation." The full report is available on the CRTC Web site at:
http://www.crtc.gc.ca/eng/bcasting/notice/1999/p9984_0.txt and
http://www.crtc.gc.ca/eng/bcasting/notice/1999/p9984_1.txt

TELUS TO BUILD NATIONAL FIBER NET: Telus will spend about $260 Million
to build a fiber network from Edmonton to Halifax, including 118 km of
fiber rings in the Toronto area.  Completion is planned for late in
2000, but Telus expects to begin offering Internet and data services
in Toronto and southern Ontario this fall.

** Shares in Call-Net Enterprises fell 13% following the
   announcement. Some analysts had predicted that Telus would
   buy Call-Net fiber to obtain national coverage.

METROMEDIA TO OFFER DARK FIBER IN TORONTO: Telus will keep only 15% of
the fiber it is installing in Toronto. The rest will be offered to
carriers and business customers as unmetered dark fiber by New
York-based Metromedia Fiber Network Inc.

MOBILITY CANADA SPLITS: Following Stentor's example, the consortium of
telco-owned wireless companies is splitting into two competing groups,
Telus versus the rest. National customers will still be served by
Mobility Canada "for the duration of all existing contracts," but
otherwise the two camps will compete with each other nationally by
reselling each others' services.

INTERNET DIRECT, LOOK TO MERGE: ISP Internet Direct and Look
Communications have agreed to amalgamate. Look's shareholders
(principally, Charles Sirois' Telesystem) will own 60% of the new
entity, which will offer high-speed wireless Internet access in
addition to Look's existing TV services.

** Internet Direct has announced that its subscribers can now dial up
without charge from more than 20 cities across Canada.

NORTEL TO DROP 4,000 MANUFACTURING JOBS: In the next three years
Nortel Networks will divest or eliminate 4,000 manufacturing
positions, including 2,400 in Canada. Two of the centers coordinating
Nortel's worldwide supply chain will be in Canada -- in St. Laurent,
Quebec, and Calgary. (See Telecom Update #166)

BELL MOBILITY LAUNCHES DIGITAL WIRELESS DATA: Bell Mobility now
provides e-mail, Internet access, and e-commerce applications to
subscribers with a data-capable phone.  Price: 15 cents/minute.

** The services include Veev (wireless banking at the Bank of
   Montreal) and Revolv, which links wireless users to their
   corporate data base.

BELL STRIKE ENDS: After a five-week strike, Bell Canada operators and
technicians returned to work on May 16. The 9,500 members of the
Communications, Energy and Paperworkers union voted 80% in favor of a
new five-year contract.

SHAW TO ACCELERATE INTERNET ROLLOUT: Shaw Communications says it will
accelerate deployment of two-way cable service, making its high-speed
@Home Internet service available to all of its customers within six
months.

** Shaw@Home Internet service now forwards e-mail to Shaw
   pagers for $9.95/month. Shaw@Home also provides two extra
   computer hook-ups from a cable modem for an additional
   $9.95/month each.

24-HOUR LD PLAN FROM BELL: Beginning May 31, Bell Canada will offer
residential customers the option of paying 10 cents/minute for calls
to Canada and 20 cents/minute for U.S.  calls, 24 hours a day, 7 days
a week. Users of the First Rate 24 Hours plan must also pay a
$4.95/month subscription fee.

PROFIT, REVENUE DOWN AT TELEGLOBE: Teleglobe reports that
first-quarter revenue declined 13% from last year, mostly because of a
21% drop in sales by its Excel subsidiary. Net income (excluding
one-time items) fell 26%.

** Teleglobe's Excel Canada long distance service says it has
   signed 10,000 representatives and 52,000 customers since
   its launch in March.

CRTC RULES ON IX FORBEARANCE: In Telecom Order 99-435, the CRTC says
it will forbear from regulating Interexchange Private Line (IXPL)
services offered by non-dominant carriers. The Commission rejected a
Call-Net proposal to re-institute regulation of dominant carrier IXPL
services, and a Stentor proposal to remove the requirement that
forbearance be applied on a route-by-route basis.

** CRTC Telecom Order 99-434 sets out the criteria the
   Commission will use when deciding whether to forbear from
   regulating high capacity and digital data services offered
   by the major telcos.

http://www.crtc.gc.ca/internet/1999/8045/04/o99-0434.htm
http://www.crtc.gc.ca/internet/1999/8045/04/o99-0435.htm

MOTOROLA ESTABLISHES MONTREAL SOFTWARE CENTER: Motorola Canada is
establishing a $100-Million software development center in Montreal,
with several hundred staff positions.

HUMMINGBIRD WINS PC DOCS BIDDING WAR: Hummingbird has raised its bid
for PC Docs Group International, a Toronto-based software company, to
about $305 Million. In response, the rival bidder, Open Text Corp, has
withdrawn its offer. (See Telecom Update #181)

METRONET INSTALLS 100,000 LINES: MetroNet Communications says it has
now installed 100,000 switched local access lines. A majority of the
access lines are now on MetroNet-owned fiber and switches.

CANTEL OFFERS TEXT MESSAGING FOR THE DEAF: Cantel's Interactive
Messaging Service now forwards text messages to users of TDD
(Telecommunications Device for the Deaf) equipment.

BCNET SEEKS PARTNERS FOR ADVANCED UNIVERSITY NETWORK: BCnet has issued
a Request for Proposals for establishing an advanced optical network
to link universities and other high- technology institutions in the
province. Register by May 18.

http://www.bc.net/RFI.html

CRTC PUBLISHES 1999-2000 CALENDAR: The CRTC has posted its calendar of
activities until March 2000. Go to
http://www.crtc.gc.ca/eng/backgrnd/calendar/cal9905e.htm

CORPORATE REPORTS:

** Microcell: Microcell Telecommunications reports 344,000
   subscribers, more than three times last year's level.
   Revenue per user is up 6%; cost of subscriber acquisition
   has been cut almost in half, to $455. (See Telecom Update
   #179)

** TIW: Telesystem International Wireless says it now has
   1.56 million customers, most of them in Brazil and
   Romania. Revenue rose to US$391 Million in 1998 from
   US$71 Million the previous year.

TECHNIQUES TO QUELL THE WIRELESS WORK OVERLOAD: In the May issue of
Telemanagement, John Riddell reports on the most promising techniques
for reducing reduce the burden of managing corporate cellphones. Also
in Telemanagement #165:

** Gerry Blackwell talks to Research In Motion, the Waterloo,
   Ontario, company that is bidding for leadership in
   wireless "wearable computing."

** Rob Slade discusses books on how to secure Internet
   commerce.

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